Press Release

Music Publishers and Record Labels Reach Accord to Facilitate Licensing for Internet Distribution.
The National Music Publishers' Association, Inc. (NMPA) and the Recording Industry Association of America (RIAA) jointly announced today that they had reached agreement on new procedures to facilitate the licensing of musical compositions - i.e., the songs embodied in recordings - for distribution on the Internet.

The agreement, to be implemented in transactions between RIAA member record companies and a wholly owned subsidiary of NMPA, The Harry Fox Agency, Inc., (HFA), sets forth streamlined procedures under which musical works may be licensed expeditiously through HFA. These procedures will substantially reduce the time and effort required to clear music publishing rights for the electronic delivery of sound recordings to consumers.

In addition to this agreement with the major record labels, HFA has entered into agreements with numerous other distributors of sound recordings over the Internet, and is continuing to expand its Internet licensing program to meet the growing consumer demand for online delivery of music.

"This opens a new era in the licensing of music on the Internet," stated Edward P. Murphy, President and CEO of NMPA. "Broad utilization by distributors of the licensing resources of HFA will make getting licensed music into the hands of the consumer that much easier. The arrangement will also enable accurate identification of Internet music files, a critical requirement for copyright owners and their songwriter partners."

"Record labels have been putting more and more of their content online, but securing licenses from the various rights owners has been time-consuming as well as an administrative burden," explained Cary Sherman, Senior Executive Vice President and General Counsel of RIAA. "The new arrangement with HFA will expedite licensing for digital downloads very substantially, enabling our companies to make more music available to consumers more easily and more quickly."

The arrangement, negotiated under the provisions of the U.S. Copyright Act governing online music licensing, will remain in effect until the formal adoption of regulations concerning "Digital Phonorecord Delivery" licenses by the Librarian of Congress, or until September 30, 2001, whichever occurs first.

The National Music Publishers' Association, Inc., founded in 1917, works to protect and advance the interests of the music publishing industry. With over 700 members, NMPA represents the most important and influential music publishing firms throughout the United States. The Harry Fox Agency, Inc., the licensing subsidiary of NMPA, provides an information source, clearing house and monitoring service for licensing musical copyrights, and acts as licensing agent for more than 25,000 music publisher principals, who in turn represent the interests of more than 150,000 songwriters.

The Recording Industry Association of America is a trade association whose members create, manufacture and/or distribute approximately 90 percent of all legitimate sound recordings produced and sold in the United States. For more information on the RIAA, go to www.riaa.com.